FBR exceeds revenue expectations in September, narrowing previous shortfall

ISLAMABAD: The Federal Board of Revenue (FBR) recorded revenue collection of Rs1.10 trillion in September, which is expected to help address the shortfalls from the first two months of the fiscal year 2024-25.

According to a report by Dawn, the tax collection slightly surpassed the monthly target of Rs1.098 trillion, exceeding it by Rs2 billion. This brings the overall shortfall from the first two months, initially at Rs98 billion, down to Rs96 billion.

Compared to September last year, when Rs833 billion was collected, this year’s revenue for the month showed a significant 32 per cent increase.

The provisional figures indicate that the total collection for the first quarter of FY25 amounted to Rs2.556 trillion, falling short of the Rs2.652 trillion target by Rs96 billion, or 3.62 per cent. However, compared to the same period last year, this quarter still marked a 25 per cent increase in revenue, rising from Rs2.041 trillion.

Refund payments to taxpayers also saw some changes. The FBR disbursed Rs146 billion in refunds during the first quarter, reflecting a 13.17 per cent rise from Rs129 billion during the same period last year.

However, refunds paid in September dropped to Rs15 billion, a 59.45 per cent decrease from the Rs37 billion issued in September of the previous year.

For the fiscal year 2024-25, the government has set an ambitious revenue collection target of Rs12.970 trillion, which is over 40 per cent higher than the goal for the previous fiscal year.

The FBR expects to generate an additional Rs3.659 trillion, supported by factors like GDP growth of 3 per cent, large-scale manufacturing (LSM) growth of 3.5 per cent, inflation at 12.9 per cent, and import growth at 16.9 per cent, which together are projected to contribute Rs1.863 trillion to the collection.

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